THE “frenetic” activity driving soaring house prices is starting to ease, according to Britain’s biggest building society.

Graham Beale has urged the Bank of England to delay any further house market action[PA]

Nationwide chief executive Graham Beale urged the Bank of England to delay taking any action to cool the market for fear it could hit still-subdued price levels outside London.

He made the appeal as Nationwide reported record underlying pre-tax annual profits which more than doubled to £924million as gross mortgage lending rose 31 per cent to £28.1billion.

Mr Beale said the profits were not a one-off and the business was “firing on all cylinders”.

But he said house market activity in London was starting to ease while elsewhere in Britain prices remained two per cent below 2007 levels – 21 per cent when adjusted for inflation.

“The market has gone from quite a frenetic state to a very busy state,” he said.

“I am a great believer in natural corrections.

“If house prices come up and up and up, there will come a point when people won’t pay or they can’t pay.

Whatever happens in London, we could get unintended consequences by starting to destabilise the rise in the housing market

Graham Beale, Nationwide chief executive

“I think there are some indications we are starting to see that correction in parts of London.”

There is widespread speculation that the Bank of England’s financial policy committee will act next month to cool the market, after deputy governor Sir Jon Cunliffe said it was the brightest of “blinking warning lights” .

The Bank said lenders could be asked to restrict borrowing terms or be forced to hold more cash on their balance sheets if it feels action is necessary.

However, latest figures show mortgage approvals falling and Mr Beale suggested waiting until October for a “more considered view” of how the market had developed.

“Whatever happens in London, we could get unintended consequences by starting to destabilise the rise in the housing market,” he said.

“It is an important aspect in the growth of the rest of the UK.”

Nationwide’s results for the year to April 4 show it helped 58,100 first-time buyers, a 37 per cent increase, while 430,000 new current accounts were opened, a rise of 18 per cent on last year.

Deposit balances grew by ­ £4.9billion.

Data from the Office for National Statistics showed London prices rising by 17 per cent, compared with a British average of eight per cent.